Domestic Iron Ore Prices Dropped Sharply Last Week, And Are Likely To Fall This Week

SHANGHAI, Oct 19(SMM) – Weekly iron ore price review: Hebei: down 20-30 yuan/mt in Tangshan, Qianxi, and Qian'an; west Liaoning: remained stable in Chaoyang, Beipiao, and Jianping; east China: down 30-40 yuan/mt.

After the holiday, the Tangshan iron ore concentrate market cooled down, with a wait-and-see sentiment on both supply and demand. Steel mills’ losses per mt of steel expanded, so the willingness to lower iron ore concentrate was higher. Traders were worried about the weakening market outlook, so they were cautious in purchasing. Seller’s attitude varied with some remaining quotations unchanged due to resource constraints and others conducting price reductions due to concerns about market conditions. As some steel mills gradually added maintenance plans, demand was diminished. Considering that leading steel mills faced the risk of price cuts, it is expected that market prices in Tangshan may move down in the near future.

Western Liaoning was mostly dominated by previous orders, and the beneficiation plant’s confidence in maintaining price stability weakened. Traders’ uncertainty about market outlook risks led most to wait and see and not purchase for the time being, so inquiries decreased. However, some traders had rigid demand for raw materials and wanted to lower prices, resulting in overall market price on a downward trend.

In the East China region, the suspended mines in Laiwu, Shandong, resumed production after the holiday, which slightly eased the tight situation of local iron concentrate resources. Most of the local iron ore mines were mainly sold as produced, with almost no inventory, and the sales situation was acceptable. From a pricing perspective, the average price index of imported ore declined WoW last week, and it is expected that local ore prices may drop this week.

Overall, the losses of steel mills deepened, blast furnace maintenance plans will be launched successively, and the demand for iron ore concentrate may weaken. It is expected that iron ore concentrate price may decline to some extent this week.